Source: http://www.zerohedge.com/news/2017-09-04/ethereum-bitcoin-crash-after-china-declares-initial-coin-offerings-illegal
https://www.cnbc.com/2017/09/04/bitcoin-digital-currency-price-falls-on-china-ico-ban.html
China confirmed it's threat and has made ICO's illegal. The PBOC (People's Bank of China) made the annoucement on Monday.
The PBOC requested that all fund raising activity stop immediately. Furthermore, any fundraising that has been initiated should return the money to the investors.
The ICO sector in general has come under heavy scrutiny in many countries. The SEC (US based Securities and Exchange Commission) may have signaled their policing intentions when they suggested that ICO's may be classified as securities.
Obviously, the old saying "throwing the baby out with the bath water applies" as all the crypto's are taking it on the chin the past 24-36 hours as a significant sell-off can be seen.
Comment
For those that were concerned about runaway prices, you may have a new entry point as a gift thanks to the PBOC. Will things change in the future? Guidelines and regulations for ICO's do make for a safer investment vehicle. At the same time, we don't enjoy government regulation.
Thoughts...?